Key points
- Arafura gas supply agreement has lapsed due to Arafura's failure to meet condition precedent
- Horizon Oil and Mereenie joint venture partners will re-market the gas to other customers in Northern Territory and East Coast
- Gas supply contracts were committed in advance of 1 January 2028 commencement date
Full summary
Central Petroleum Ltd has announced that the Arafura gas supply agreement, including gas supply contracts with its Mereenie joint venture partners, has lapsed due to the condition precedent (being Arafura's board approving a final investment decision (FID) of the Nolans project) not being satisfied on or before the 31 March 2025. Horizon Oil and the other Mereenie joint venture partners had committed to the three-year sale in advance of the agreed 1 January 2028 commencement date and already provided a nine-month extension to satisfy Arafura's condition precedent. Following the ongoing delays to achieving FID on the Nolans Project, Horizon and the Mereenie joint venture have decided to re-market this volume of firm gas production commencing in 2028 to other customers throughout the Northern Territory and the East Coast.